The UAE Cabinet of Ministers recently issued Resolution No. 49/2021, which amends Cabinet Resolution No. 40/2017 in relation to administrative penalties for the violation of tax laws in the UAE.
One of the key changes is the amendment of late payment penalties. This includes that an initial 2% penalty is imposed on the day following the payment due date, with an additional 4% monthly penalty imposed one month after the due date and for each subsequent month, subject to a 300% cap. The 4% mo…